What is the net present value of plant b

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Question: Jones Inc. intends to invest in one of two fruit juice manufacturing plants, Plant A and Plant B. The life of Plant A and Plant B models is 12 years. Plant A requires an initial investment of $1,090,000 and has a net annual after-tax cash inflow of $200,000. Plant B requires an initial investment of $1,640,000 and has a net annual after-tax cash inflow of $250,000. The cost of capital for the company is 12%. What is the net present value of Plant B?

Reference no: EM133534178

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